ISA S&S £2 platform fee on £100 per month investment

Ilya_Ilyich

If you're choosing to invest in funds that don't pay trail, the platform will likely always charge you because they have to recover their costs. You can invest in Blackrock trackers with HL for like 50bps, which should work out substantially cheaper than paying fees to invest in Vanguard elsewhere when you have such a small fund size.

Totton

HL transferred my ISA to them with no problem other than a few funds that couldn't move that way, in those cases a quick sell and re-buy solved the problem. Should work the same the other way although the new provider would have to do the work.

One way to look at this is that your monthly costs are reducing all the time and will soon pale into insignificance. In effect the LifeStrategy fund is very similar to a tied multi-manager but a lot cheaper :-) I use the LS 40% fund myself and balance the fixed income element by adjusting the percentage held with Vanguard, works very well.

Eponym

I would like to buy Lifestrategy 80% in my ISA but as I only invest £50 pm the platform fee would work out as, in effect, a 4% charge every month. That's before you even consider the dilution levy or annual charge.

So gains have to be pretty large to start making much difference. I think I'll hold off until I can afford to invest more.

bongoali

Totton wrote: »

HL transferred my ISA to them with no problem other than a few funds that couldn't move that way, in those cases a quick sell and re-buy solved the problem. Should work the same the other way although the new provider would have to do the work.

One way to look at this is that your monthly costs are reducing all the time and will soon pale into insignificance. In effect the LifeStrategy fund is very similar to a tied multi-manager but a lot cheaper :-) I use the LS 40% fund myself and balance the fixed income element by adjusting the percentage held with Vanguard, works very well.

what does Fixed income element mean please?

I have Van. LS 100%

bongoali

jem16 wrote: »

If you don't want to lose this year's allowance then transfer as cash as opposed to stock to save the transfer fee.

Thanks - starting to make sense .. the "cash" just needs to be reinvested in S&S I assume

sabretoothtigger

Just change the fund to L&G tracker or anyone else who hasnt a fixed fee. It'll be about 5.50 instead of 24 a year.
As of April start the vanguard at the place that has no extra charges, there isnt much point going to the hassle of moving 1k over

jem16

bongoali wrote: »

Thanks - starting to make sense .. the "cash" just needs to be reinvested in S&S I assume

It has to be a S&S ISA. It could stay in a cash account within the S&S ISA if you really wanted.

You cannot transfer to a Cash ISA.